Asking prices move further ahead of market values, TwentyCi warns lenders

The gap between sellers’ asking prices and independent property valuations has doubled over the past year, raising the prospect of more down-valuations and delayed mortgage transactions, according to new research from TwentyCi.

The property market intelligence firm’s Q2 2026 Property & Homemover Report found that newly listed properties across the UK are now marketed at an average of 11.6% above their independent Automated Valuation Model (AVM) value. That compares with a gap of 5.7% in Q2 2025.

TwentyCi said the growing difference between asking prices and independent valuations could create additional challenges for mortgage lenders, with more cases where properties are down-valued during the lending process. This can lead to renegotiations, delays to completions and an increase in transactions falling through.

The report suggests the trend is becoming more widespread rather than being limited to isolated cases. It found the proportion of UK properties listed at 10% or more above their assessed market value has increased by 9.7% compared with a year earlier.

Regional differences remain pronounced. The East of England recorded the largest increase in properties priced at least 10% above their market value, up 19.3% year-on-year. Outer London followed with a rise of 17.8%, while the South East saw an increase of 16.7%.

In contrast, Inner London and the North East showed signs of price corrections that were more closely aligned with independent market valuations.

TwentyCi said the trend could also distort perceptions of market conditions where headline indicators are based on initial asking prices rather than completed transactions or independent valuations.

Colin Bradshaw, chief executive of TwentyCi, said: “While a busy market is always welcome, this widening gap between what sellers want and what properties are actually worth should serve as a clear warning sign for the lending community.

“If listing prices drift too far from independent AVM values, down-valuations will inevitably spike.

“For lenders, this means clogged pipelines, increased administration, and higher fall-through rates.

“Relying solely on listing-led indicators right now is a risk; robust, independent valuation data has never been more critical to protect lending security.”